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AlphaRx Signs Cooperative Research and Development Agreement with US Army
Date:5/27/2008

MARKHAM, ON, May 27 /PRNewswire-FirstCall/ - AlphaRx (OTC BB:ALRX - News), an emerging biopharmaceutical company utilizing proprietary drug delivery technology to develop novel formulations of drugs, is pleased to report that AlphaRx and USAMRIID (U.S. Army Medical Research Institute of Infectious Diseases) has entered into a Cooperative Research and Development Agreement for Material Transfer (MTA). The resulting joint R&D effort enables USAMRIID scientists to test the efficacy of AlphaRx's "nanobiotics" for the treatment of severe intracellular bacterial infections caused by Category A pathogens in animal models. Category A pathogens are organisms classified by US Government used mainly in biological weapons that pose a risk to national security.

The MTA covers several "nanobiotics" including Ciprofloxacin, Doxycycline and Gentamicin developed by AlphaRx. These are the usual antibiotics used to treat patients in a bioterrorism event. However, they all show limited efficacy clinically. AlphaRx believes that their specially-formulated version of these antibiotics provides improved intracellular activity in animal studies and may have better clinical efficacy.

AlphaRx is excited with the opportunity to work with the U.S. Army. It opens up a non-commercial application to AlphaRx's drug development programs, with the potential to be a provider to the national stockpile program, through Project Bioshield.

About AlphaRx Inc.

AlphaRx is a specialty pharmaceutical company utilizing proprietary site-specific nanoparticulate drug delivery systems to develop novel formulations of drugs that are insoluble or poorly soluble in water or have yet to be administrable to the human body with an acceptable delivery method. The Company's product candidates address various pharmaceutical markets, including inflammation, tuberculosis and pneumonia.

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SOURCE AlphaRx Inc.
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